– The ACTION project aims to mitigate 45 million tonnes of CO₂ equivalent and generate a trade surplus of around US$3.5 billion in Brazil by facilitating the domestic production of carbon-negative organo-mineral fertilisers and reducing the import and use of synthetic fertilisers.
– The project is led by the Brazilian Government, supported by resources from the Mitigation Action Facility, and implemented by the United Nations Industrial Development Organisation (UNIDO), with specialised support from the Pernambuco Regional Department of the National Industrial Learning Service (SENAI), the SENAI Institute of Innovation in Information and Communication Technologies (ISI TICs), and the Cink Group.
Representatives and experts from the governments of Brazil and the United Kingdom gathered on October 7th in Brasilia for the ACTION Project Working Group meeting. The event focused on implementing the Detailed Preparation Phase (DPP) for the project “Accelerating Key Zero-Emission Technologies, Leveraging Investments in Industrial Decarbonisation” (ACTION). This international cooperation initiative aims to boost the production of carbon-negative organo-mineral fertilisers in Brazil, replacing the synthetic fertilisers widely used in the country.
The ACTION project is led by Brazil’s Ministry of Development, Industry, Trade and Services (MDIC). It is also directed by the Ministry of Science, Technology and Innovation (MCTI), the Ministry of Agriculture and Livestock (MAPA), the Ministry of Agrarian Development and Family Farming (MDA), and the Ministry of the Environment and Climate Change (MMA).
The DPP is funded by the Mitigation Action Facility and is implemented by the United Nations Industrial Development Organisation (UNIDO), with specialised support from the Pernambuco Regional Department of the National Industrial Learning Service (SENAI), the SENAI Institute of Innovation in Information and Communication Technologies (ISI TICs), and the technology consultancy firm Cink Group.
During the meeting, MDIC’s General Coordinator of Decarbonisation, Gustavo Fontenele, emphasised the importance of partnerships between institutions and the private sector in developing the project: “Each entity is extremely relevant to what we will build. We want the industry to be indispensable in the country’s decarbonisation.”
The Deputy Secretary of the Secretariat for Technological Development and Innovation (SETEC) of MCTI, Osório Coelho, pointed out that international innovations in the production of sustainable fertilisers will need to be adapted to the Brazilian context: “We will not only adapt technologies to local conditions but also develop and align them with Brazil’s needs and complexities.”
The Director of Climate, Nature and Energy at the British Embassy in Brasília, Richard Ridout, said that the success of the ACTION project in Brazil will be crucial for spreading similar practices to other countries: “We need to ensure that the project’s implementation makes a real difference for farmers in the field, bringing benefits and advantages through the use of fertilisers with a lower carbon footprint.”
The Head of UNIDO’s Energy Systems and Industrial Decarbonisation Unit, Riccardo Savigliano, explained that the project would address structural issues: “Brazil has in its DNA what is needed to make local fertiliser production more efficient. The real challenge will be the business models. We need to consider the industrial dimension, especially access to raw materials, and the existing regulatory framework.”
The Director of Innovation and Industrial Technology at SENAI in Pernambuco state, Oziel Alves, said that ACTION aligns directly with his institution’s mission: “This project is strategic for us, as it aligns with our institutional priority of promoting technological innovation and industrial capacity building.”
The ACTION team will focus on reducing Brazil’s greenhouse gas (GHG) emissions by supporting carbon-negative organo-mineral fertiliser production. This innovative approach may utilise biochar (charcoal created by heating organic matter) derived from agricultural waste – combined with nutrient-rich compost and digestate sourced from biogas plants – and other sustainable technological routes according to regional-specific economic needs. These sustainable fertilisers offer a low-emission alternative to synthetic fertilisers, actively sequestering carbon and promoting soil health.
According to a study published last year by researchers at the University of Cambridge in the UK, synthetic fertilisers emit 2.6 gigatonnes of carbon annually worldwide, more than the combined emissions of global aviation and shipping. This data highlights the importance of promoting alternative fertilisers to mitigate climate change – especially in countries like Brazil, which has extensive agro-industrial activity.
In addition to the environmental benefits, increasing domestic fertiliser production is expected to reduce the need for imports, resulting in commercial gains for Brazil and the creation of green jobs within the country. According to MDIC, imported fertilisers account for 87% of national agricultural consumption.
Felipe Cruz, CEO of Cink Group, addressed this topic during a remote presentation. He explained that Brazil’s dependence on fertiliser imports had significant economic impacts: “We need to ensure that the project not only reduces carbon emissions but also offers economic resilience for the most vulnerable communities,” he added.
During the meeting, MDA’s Project Coordinator, Lilian Ferreira de Sousa, confirmed that the project would have economic, environmental, and social impacts: “The climate crisis will only be solved if all of us are engaged with this agenda. We must think of new ways to use the land and solve hunger.”
Expected Impacts
With a total duration of five years and lasting systemic impacts, the ACTION project is anticipated to yield the following results over a projected 15-year timeframe:
– Mitigation of 45 million tonnes of CO2 equivalent.
– Generation of a trade surplus of R$ 20 billion (around US$ 3.5 billion[1]), resulting from an 8-million-tonne reduction in fertiliser imports.
– Add value to the digestate from the annual production of 660 million cubic metres of biogas (equivalent to 404 million litres of diesel).
– Increase agricultural production by R$19 billion (around US$3.3 billion1), driven by sustainable soil productivity practices.
– Creation of 7,804 direct jobs, 3,000 of which will be held by women.
– Increase of 154% in the average income of small farmers.
– Expansion of biochar use for carbon sequestration and improved water retention in soil, reducing the need for irrigation.
– Recovery of 2 million hectares (around 5 million acres) of soil and increased agro-industrial productivity without expanding agricultural land, reducing deforestation.
During the meeting, Sidney Medeiros, the Agricultural Auditor of the Department of Sustainable Production and Irrigation (DEPROS) at MAPA, related the ACTION project to the goals of Brazil’s ABC+ Plan: “The ABC+ Plan aims to convince farmers to adopt practices that improve income, resilience, adaptation, and mitigation. The plan includes, for example, a credit line for farmers who want to adopt sustainable practices such as no-till systems, bio-inputs, pasture recovery, and other practices.”
The meeting also featured a presentation by Bruno Neves, the Project Management Specialist for GEF Biogas Brazil at UNIDO, on how the GEF project is working to expand biogas production in the country. Neves highlighted the sector’s significant growth, emphasising biogas’s potential to create jobs and its essential role in transitioning to a more sustainable energy matrix.
Next Steps
The ACTION Project Working Group meeting on 7 October marked the beginning of the DPP’s implementation. In the coming months, the project team will hold a series of meetings and workshops to engage key players in the production chain and develop a strategy for applying the planned technological solutions. The team expects to deliver a final execution proposal to the Mitigation Action Facility by August 2025.
Following the facility’s assessment of the proposal, scheduled for December 2025, the MAF Board will decide on the project’s financing. The approach will focus on developing business models favourable to Brazil’s agro-industry’s production and use of carbon-negative organo-mineral fertilisers.
ACTION is expected to transform the fertiliser sector in Brazil, promote low-carbon agriculture, and strengthen the country’s economic resilience to climate and energy challenges.
[1] Exchange result based on Brazil’s Central Bank conversion website, done on 16th October 2024: https://www.bcb.gov.br/en/currencyconversion.